Wheat futures slip with Black Sea diplomacy in focus
WEAT•Chicago wheat futures fell below $7 per bushel for the first time in a month as efforts to ease disruption to Black Sea grain exports raised expectations for recovering shipments. Corn also slipped, while soybeans edged higher.
1. Wheat falls below $7
The most actively traded Chicago wheat contract was down 7.5 cents at $6.99½ per bushel by 11:50 a.m. CDT, after reaching $6.83½, its lowest price since August 19. Diplomatic efforts to improve Black Sea shipping and a lack of details on new agricultural deals at a US-China summit weighed on prices.
2. Trade and market pressures
Attempts by Turkey to broker a Black Sea truce have fueled expectations of better shipping flows, despite continued attacks and skepticism about prospects for shipments. StoneX economist Mike Castle said renewed mediation efforts focus on Black Sea shipping itself, and that even a possible improvement in flows may unsettle investors holding large speculative positions. A stronger dollar earlier in the week also curbed US grain export prospects.
3. Corn and soybeans
CBOT corn slipped half a cent to $5.27 a bushel after touching a one-month low, while soybeans rose half a cent to $13.18. The US has not yet announced further Chinese commitments to buy US agricultural goods; US Trade Representative Jamieson Greer said the US is expected to release details of trade negotiations with China on Monday.
